‘A chartered accountant in practice shall be deemed to be guilty of professional misconduct, if he accepts a position as auditor previously held by another chartered accountant without first communicating with him in writing;’ [Clause 8 of Part I of The First Schedule to Chartered Accountants Act, 1949]
The provision probably found existence in the Act to institute discipline amongst auditors, avoid litigation with auditee and also to help maintaining the independence of auditors.
However, whether this provision is being complied with by PU’s in letter and spirit? Has it yielded the desired output? Is it helping retiring auditors to recover their dues? Is it working as hindrance to auditee in changing auditors? Is it useful for the incoming auditor? Has ICAI been benefited by this provision in exercising disciplines? Numerous such questions may raise the eyebrows of the reader.
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